More About TD's Newly Issued Green Bond
Karen Clarke-Whistler, Chief Environment Officer of TD Bank Group, talks about the newly released TD Green Bond
On March 28, 2014, TD Bank Group issued a three-year $500 million green bond offering – the first to be offered by a Canadian commercial bank. The bond was well over-subscribed by mainstream and socially responsible investors.
TD has previously underwritten a number of World Bank Green Bonds and other bonds aligned with the climate economy offerings. While green bond standards continue to evolve and develop there is a clear appetite by investors for support of projects that result in reduced greenhouse gas emissions and improved energy efficiency. In its 2013 report Green Bonds: Victory Bonds for the Environment, TD Economics pointed out that the green bond market has been growing rapidly and its value has been estimated at up to $346 billion.
TD’s green bond will be used solely for projects funded in Canada that contribute to the low carbon economy through:
- Renewable and low carbon energy and related infrastructure, such as hydroelectric, wind, solar and geothermal. There is a strong and growing customer base in this area.
- Energy efficiency and management, with a focus on green buildings. There is tremendous progress being made in designing, building and operating more efficient buildings. TD has a large commercial real estate lending base and as of March 2014 TD itself has 127 LEED certified locations in North America and 100 facilities generating solar energy, including two branches designed to be net zero energy.
- Green infrastructure and sustainable land use. This category of projects will include municipal and regional infrastructure projects that contribute to energy reduction as well as projects that involve certified sustainable agricultural and forestry practices.
The TD Green Bond will fund new projects or refinance continuing business operations. The proceeds will be held separately until they’re allocated to fund green initiatives. The TD Green Bond standards are designed to be aligned with the recently released Green Bond Principles.TD has developed a comprehensive internal review process for determining and documenting eligibility. Details of the allocation of proceeds will be reported on annually and assured by an independent third party.